No more single source - it's "divide & fund" - the best way for your business loans
The most popular way of raising capital after the individual’s funds for the business is debt syndication. It is a process of combining a group of financiers in funding a single borrower.
Today, several businesses in the Indian market could use supplementary financing solutions for the financial backing required to extend operations and grow.
Here is an example.
As the owner of a manufacturing unit, a businessman has recently received a major contract to supply his products. For the existing clients/contracts, he has already exhausted the line of credit offered by his suppliers. He needs a large sum to finance the raw material requirements and increase the production volume required by the newly received contract, that a single financier may not be able to fulfill. He may take the equity route, which may involve the investor claiming a stake in the business while reducing the ownership of the businessman.
The other option he can consider is Debt Syndication. As mentioned earlier, the syndicated, structured loan involves a group of financiers funding to a single borrower. Usually, Debt Syndication is facilitated by a third party, an advisory firm such as us, Leela Fincare. They have strong relationships with various financial institutes (FIs) and are thorough in applicable documentation, checks, and processes.
Coming back to our example, the businessman reaches out to an advisory firm. The firm collects the required information, does a thorough analysis, builds a case, presents, and negotiates with the group of financial institutes. They evaluate various options presented by the group of FIs, help to clarify any queries from them and secure the loan through the best option, as required by the businessman.
The advisory firm furnishes the required funding with thoughtfully negotiated re-payment conditions for the business and appropriate returns to the group of FIs, creating a win-win situation for all.
This is just one of the examples. There can be situations wherein a business aspires to diversify, get into another market, expand in different locations and many more. And, Debt Syndication can be of great help.
With the recent COVID-19 pandemic resulting in businesses scaling down or even closing, the requirement for syndicated loans will be on a rise as they look for a financial push to get back on track.
Do you aspire to scale your business or diversify and need a financial help? Are you looking for financial backing for sailing through the challenging times?
Leela Fincare is here to help. While making the debt plan for your company, we curate customized & most cost-effective solutions, which suit best to your business requirements, provided only after a thorough analysis of all the options available.
We at Leela Fincare provide 360-degree support at each step of the loan process until we implement the debt solution in your business.
Reach out to us today at info@leelafincare.com | www.leelafincare.com. Let's get you started!